Value Partners plans to launch a new private equity (PE) fund targeting high-net-worth investors early next year.
This will be the first fund launched by Value Partners’ newly established PE subsidiary – Value Partners Private Equity Investment (Shen Zhen) (VP Shenzhen) – in mainland China.
The fund will primarily invest in private higher and vocational education on the mainland of China, with a focus on control investments.
The company's spokesperson told Citywire Asia that the fund will focus on middle-and late-stage projects with relatively robust business models, controllable risks and good return expectations.
'We will be looking to add value to the projects that we invest in before exiting through potential exits channels including initial public offerings,' the spokesperson said.
The fund will also be available to institutitonal investors.
The spokesperson said Stephanie Zhang will be the fund manager from Value Partner's side and she will be supported by the investment team at VP Shenzhen.
Early this month, Value Partners announced that VP Shenzhen has entered into an agreement with Huajiao Education Technology (Jiangxi) to establish a PE fund that focuses on the Chinese education sector.
Huajiao Education Technology (Jiangxi) is a subsidiary of Hong Kong-listed China Education Group Holdings (CEG).
As the fund has a co-general partner structure, CEG will also be involved in making investment decisions, according to the spokesperson.
The new fund has a target assets under management of RMB5 billion ($750 million) and a term of five years that is extendable for two additional one year terms.
Value Partners and CEG will be limited partners of the fund, while a subsidiary of each of Value Partners and CEG will serve as co-general partners of the fund.
The co-general partners will continue to look for limited partners to invest in the fund.
The fund is launched under the Qualified Foreign Limited Partnership (QFLP) license held by VP Shenzhen.
Located in the Qianhai Special Economic Zone, VP Shenzhen is licensed to raise funds both on mainland China and overseas to invest in PE projects in China’s domestic market.
Value Partners launched its Asia-Pacific PE real estate platform in June 2017.
It became the first Hong Kong-based asset manager to be granted a Private Fund Management (PFM) license on mainland China via its Shanghai subsidiary in November 2017.